In October, property prices in the UK experienced a slower increase than the typical seasonal trend, due to expanded options for buyers and heightened competition among sellers, according to a statement from the property platform Rightmove on Monday.
House prices rose by a modest 0.3% from September to October, significantly less than the usual seasonal increase of 1.3% for this period. This follows a 0.8% rise in prices recorded in September.
A surge in buyer choice, reaching levels unprecedented in the past decade, is exerting downward pressure on price growth. Buyers are leveraging their enhanced negotiating power, leading to a moderation in price increases.
"Prices are seeing limited growth in part because some sellers are adhering to advice from agents and Rightmove to set competitive prices to attract buyers. This is especially pertinent as seller competition intensifies, thus maintaining market activity," the property website noted.
Data revealed a 29% increase in the number of sales agreements in October compared to the previous year, marking a robust recovery from the market's softer conditions a year prior.
Rightmove indicated that despite uncertainties introduced by the Autumn Budget, the core demand from buyers remains robust, with a 17% uptick in inquiries from potential buyers to agents about available homes.
Additionally, the supply of homes available for sale grew by 12% year-over-year, reaching the highest per estate agent count since 2014.
Looking ahead, Rightmove provided an optimistic outlook for the property market moving into 2025, despite ongoing affordability challenges. Some buyers might delay their purchases awaiting clarity on budgetary measures and reduced mortgage rates.
Rightmove anticipates that the combination of reduced bank rates and wage growth outstripping house price increases will make 2025 a particularly dynamic year for the housing market.
